Bloomberg reported that China National Offshore Oil Corp that country largest offshore oil explorer and Altona Energy Plc approved a AUD 40 million program to evaluate a coal-to-liquids project in South Australia.

Altona said in a statement units of the two companies are due to start the feasibility study into the Arckaringa venture in the fourth quarter of this year. The first stage is likely to last 12 months. London based Altona estimates it has a 7.8 billion tonnes coal resource at the Arckaringa Basin about 800 kilometers North West of Adelaide.

Mr Chris Lambert Altona Chairman said the joint venture is moving from a conceptual and planning phase into detailed evaluation and execution.

Altona aims to convert its coal into transport fuels that produce lower emissions than conventional fuels as Australia seeks to tackle climate change.

(Sourced from Bloomberg)